Let’s take a quick snapshot of the business development company (BDC) environment. After spending a few years riding the popularity wave, the small and mid-market lenders have hit a wall. The vast majority of publicly traded BDCs are trading below net asset value (NAV), meaning they cannot raise more capital from the public markets. And it’s possible that will result in M&A.

A hint of BDC M&A activity is already upon us. “The future is a bit uncertain, but it’s certainly an area where we’re fielding a lot of inquiries,” says Will Tuttle, Dechert partner.

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